HomeMy WebLinkAbout2884ORDINANCE NO. -�90
AN ORDINANCE of the City of Kent,
Washington, authorizing for the making of
interfund loans of municipal monies to comply
with the provisions of RCW 43.09.210 and
providing for accounting procedures when such
interfund loans are made.
WHEREAS, RCW 43.09.210 states in part that "all services
rendered by . . . one department, public improvement, undertaking,
institution, or public service industry to another, shall be paid
for at its true and full value . . . or no department . . . shall
benefit in any financial manner whatever by an appropriation or
fund made for the support of another"; and
WHEREAS, the City seeks compliance with the provisions of
RCW 43.09.210; and
WHEREAS, the City of Kent Finance Department requires
City Council authorization for the making of interfund loans in
order to maintain positive cash balances in all funds pursuant to
the provisions of RCW 43.09.210; NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON DOES
HEREBY ORDAIN AS FOLLOWS:
Section 1. Authorization. The Kent City Council does
hereby authorize the Finance Director, or his/her designee, to
make interfund loans of those municipal monies which are otherwis(
legally available for investment purposes, where such loans would
be necessary to ensure compliance with the provisions of RCW
43.09.210.
Section 2. Procedures. The following procedures shall
be used for the establishment and accounting of all interfund
loans made pursuant to this ordinance.
1. The City Council by ordinance or resolution shall
approve all interfund loans and provide in the
authorization a planned schedule of repayment of th
loan principal and shall set a reasonable rate of
interest (based upon the external rate available to
the municipality) to be paid to the lending fund.
2. Interest shall be charged in all cases unless:
a. the borrowing fund has no independent source of
revenue other than the lending fund;
b. the borrowing fund is normally funded by the
lending fund; or
C. the lending fund is the general fund, which,
being unrestricted can loan interest free,
except to a proprietary fund.
3. The borrowing fund must anticipate sufficient
revenues to be in a position over the period of the
loan to make the specified principal and interest
payments as required in the authorizing ordinance.
4. The term of loan should whenever practicable be
restricted to a period of one year, but in no case
shall the term of loan exceed three years, except
for those funds which are legally permitted to
support one another through appropriations,
transfers, advances, etc.
5. Only that portion of a given fund which, in the
prudent management of municipal finances as
determined by the Finance Director, is clearly
inactive or in excess of current needs may be loan
to other municipal funds or invested.
6. Appropriate accounting records shall be maintained
to reflect the balances of loans payable and
receivable in every fund affected by such
transactions.
Section 3. Any prior act consistent with the provisions
herein are hereby ratified and approved.
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Section 4. Effective Date. This ordinance shall take
effect and be in force thirty (30) days from and after its
passage, approval and publicatiop as provided by law.
ATTEST:
R, MAYOR
MARIE JENSEN, C TY CL RK
APPROVED AS7TO FORM:
LL, CITY A
PASSED the day of 1989.
APPROVED the day of N-� , 1989.
PUBLISHED they day of , 1989.
I hereby certify that this is a true copy of Ordinanc
No.aq'-gy, passed by the City Council of the City of Kent,
Washington, and approved by the Mayor of the City of Kent as hereon
indicated.
7850-280
(SEAL)
�RI N, CITY CLERK
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